It is important to know what to expect as you navigate through the process of purchasing your next home. I trust these basic guidelines help to give you an idea of the process, though your agent should be your guiding hand through these details and much more.

Why Buy

• Houses in Alameda County have appreciated approximately 6% annually over the last 20 yrs. This figure varies from neighborhood to neighborhood, but used as a frame of reference, in 5 yrs a $500,000 house could be worth $670,000. Your investment of $100,000, 20% down, has the potential to reap an annual return rate of 30%.
• Furthermore, interest and property tax is deductible. Those payments come off the top of your tax return, lowering your effective monthly payments significantly.
• If you are currently renting, I urge you to do the math: Am I better off renting?

Pre-approval

• Get pre-approved for a home loan. The lender will require documentation of your salary, copies of bank statements and will run a credit report. It takes a few days.
• Pre-approval is different than pre-qualification. The approval carries more weight and is essentially required to get an offer accepted in our competitive marketplace.

Find a real estate agent you like and trust

• Find an agent with whom you connect. It is a very personal, emotional and detailed process. You must be very comfortable and very confident with your representation.
• The buyer doesn’t pay the commission, the seller does, so let someone advocate for you.
• Don’t delay. Should you happen upon the right home, you want to be in a position to make an offer without scrambling to find an agent to represent you at the last minute.

Outline your needs and desires

• Previewing homes clarifies features you desire. A good agent will effectively plot your course.
• Listen to yourself. Paying attention to your gut reactions to various characteristics of a home or neighborhood prove quite valuable. Your answers are often right there!
• Prioritize what is actually important to you. This is a competitive market and you will have the upper hand by knowing what is paramount in your home purchase.
• Try not to get overwhelmed. Count on your agent’s objectivity and guidance.

Making an Offer

• Offers are typically heard on a specific day, sometimes at a particular hour. Multiple offers are not uncommon. Your agent should thoughtfully walk you through your offer.
• Delivering a competitive offer requires your checkbook for a good faith deposit, pre-approval documentation and proof of funds for your down payment.
• If accepted, your offer is the contract.

Escrow

• Understand the framework, but rely on your agent to execute items to a timely close.
• Fulfill responsibilities associated with contingencies in the contract. Examples: getting a home inspection, insuring the home, getting a pest report, having the drainage system evaluated and so forth. A reputable agent will provide you with superb service vendors.
• Negotiate repairs and remove contingencies. This is where your agent’s skills are vital.
• Complete the final walk-through just before closing.
• Sign the grant deed, the bank funds your loan and the house is yours.